Start-up Complexity and the Thickness of Regional Input Markets
AbstractAlthough there is a large and rapidly growing literature on the determinants of regional variation in new firm formation, relatively little is known about the interrelation between the characteristics of start-up firms and urban structure. It is only recently that scholars of urban economics have suggested a theoretical link between the thickness of regional input markets and the complexity of feasible start-ups. The current paper classifies start-ups in different industry groups according to their complexity and analyzes the impact of regional input market thickness on the frequency of start-ups with different degrees of complexity. We find that thicker input markets do indeed foster more complex start-ups, but that some inputs are more important than others
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1842.
Length: 29 pages
Date of creation: Jun 2013
Date of revision:
Entrepreneurship; Start-up complexity; Thick markets; Regional analysis;
Find related papers by JEL classification:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-06 (All new papers)
- NEP-ENT-2013-09-06 (Entrepreneurship)
- NEP-GEO-2013-09-06 (Economic Geography)
- NEP-URE-2013-09-06 (Urban & Real Estate Economics)
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